All amounts are in Canadian dollars and are based on our unaudited
Interim Condensed Consolidated Financial Statements for the quarter
April 30, 2013 and related notes prepared in accordance with
International Financial Reporting Standards (IFRS), unless otherwise
noted. Our Second Quarter 2013 Report to Shareholders and Supplementary
Financial Information are available on the Investor Relations page of www.scotiabank.com. Additional information relating to the Bank, including the Bank's Annual Information Form, can be found on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. |
Second quarter financial measures compared to the same period a year ago:
TORONTO, May 28, 2013 /CNW/ - Scotiabank reported second quarter net income of $1,601 million compared with net income of $1,460 million in the same period last year. Year over year, net income grew 10%. Diluted earnings per share were $1.23, compared to $1.15 in the same period a year ago. Return on equity remained strong at 16.2%.
"We continue to have very strong results this quarter driven by very good revenue growth. Each business line made a solid contribution to these good results" said Rick Waugh, Scotiabank CEO. "Our diversification and straightforward business model have allowed us to take advantage of opportunities to grow. Our diverse team working together across our broad-based business provides seamless and complete solutions to our customers, which contributed to the solid results in the first half of this year."
"Canadian Banking had a very good second quarter, with net income of $547 million. There was strong asset growth across most businesses, as well as a solid contribution from ING. Our retail credit portfolios also continue to perform well.
"International Banking reported another solid quarter with net income of $471 million. Our well diversified platform continues to deliver positive results. Strong retail and commercial loan and deposit growth in Latin America balanced the more modest growth in the Caribbean. In Asia, we also saw a healthy contribution from our investment in Thanachart Bank in Thailand. Provisions for credit losses remain within expectations and have risen in line with growth and changes in product mix, primarily in Latin America.
"With net income of $335 million, Global Wealth Management had a very strong second quarter. Operating revenues were in excess of $1 billion for the first time and ScotiaFunds mutual fund sales were a record high. There were very good results from our international operations with strong growth across our wealth and insurance businesses. This quarter we also acquired 50% of AFP Horizonte, a pension fund management business in Peru which will provide greater scale to our existing pension fund management business in Peru.
"Global Banking and Markets had a solid quarter with net income of $361 million. There were good contributions from the lending and most capital markets businesses despite overall lower market activity and some market-driven challenges in commodities. Results also benefitted from higher new issue revenues and strong brokerage commissions.
"The Bank continues to maintain strong, high quality capital levels. The Bank's Common Equity Tier 1 capital ratio, on an all-in basis, was 8.6%, well above the 7% minimum.
With strong results in the first six months of this year and the continued execution of our focused strategy, we are well-positioned to successfully achieve our goals for 2013."
YEAR-TO-DATE PERFORMANCE versus key 2013 financial and operational objectives was as follows:
TARGET #1: Earn a return on equity (ROE)(1) of 15 to 18%. For the six months Scotiabank earned an ROE of 16.4%.
TARGET #2: Generate growth in earnings per common share (diluted) of 5 to 10%(2). Our year-to-date growth in earnings per share was 9%(2).
TARGET #3: Maintain a productivity ratio(1) of less than 56%. Scotiabank's ratio was 53.5% for the six months.
TARGET #4: Maintain strong capital ratios. Scotiabank's capital ratios remains
strong by both Canadian and international standards.
(1) Refer below for a discussion of non-GAAP measures.
(2) Excluding $708 million or 61 cents per share relating to real estate
gains in 2012 of which $94 million or 8 cents related to the first
quarter.
Financial Highlights
As at and for the three months ended | For the six months ended | |||||
(Unaudited) |
April 30 2013 |
January 31 2013 |
April 30 2012 |
April 30 2013 |
April 30 2012 |
|
Operating results ($ millions) | ||||||
Net interest income | 2,784 | 2,771 | 2,481 | 5,555 | 4,856 | |
Net interest income (TEB(1)) | 2,787 | 2,775 | 2,484 | 5,562 | 4,864 | |
Non-interest revenue | 2,438 | 2,411 | 2,223 | 4,849 | 4,469 | |
Non-interest revenue (TEB(1)) | 2,517 | 2,481 | 2,289 | 4,998 | 4,598 | |
Total revenue | 5,222 | 5,182 | 4,704 | 10,404 | 9,325 | |
Total revenue (TEB(1)) | 5,304 | 5,256 | 4,773 | 10,560 | 9,462 | |
Provision for credit losses | 343 | 310 | 264 | 653 | 529 | |
Operating expenses | 2,841 | 2,813 | 2,565 | 5,654 | 5,072 | |
Provision for income taxes | 437 | 434 | 415 | 871 | 828 | |
Provision for income taxes (TEB(1)) | 519 | 508 | 484 | 1,027 | 965 | |
Net income | 1,601 | 1,625 | 1,460 | 3,226 | 2,896 | |
Net income attributable to common shareholders | 1,479 | 1,504 | 1,336 | 2,983 | 2,679 | |
Operating performance | ||||||
Basic earnings per share ($) | 1.24 | 1.27 | 1.18 | 2.51 | 2.41 | |
Diluted earnings per share ($) | 1.23 | 1.25 | 1.15 | 2.48 | 2.36 | |
Adjusted diluted earnings per share(1)(2) ($) | 1.24 | 1.27 | 1.16 | 2.51 | 2.38 | |
Return on equity(1) (%) | 16.2 | 16.6 | 18.6 | 16.4 | 19.1 | |
Productivity ratio (%) (TEB(1)) | 53.6 | 53.5 | 53.7 | 53.5 | 53.6 | |
Core banking margin (%) (TEB(1)) | 2.31 | 2.30 | 2.37 | 2.30 | 2.31 | |
Financial position information ($ millions) | ||||||
Cash and deposits with financial institutions(3) | 55,157 | 53,120 | 59,298 | |||
Trading assets | 104,266 | 104,493 | 94,214 | |||
Loans(3) | 394,673 | 388,610 | 336,293 | |||
Total assets | 754,156 | 736,361 | 659,690 | |||
Deposits(3) | 517,896 | 512,561 | 460,902 | |||
Common equity | 38,012 | 36,768 | 30,566 | |||
Preferred shares | 4,384 | 4,384 | 4,384 | |||
Assets under administration(1) | 362,622 | 352,073 | 318,201 | |||
Assets under management(1) | 135,156 | 130,576 | 108,661 | |||
Capital measures(4) | ||||||
Common Equity Tier 1 ratio (%) | 8.6 | 8.2 | N/A | |||
Tier 1 capital ratio (%) | 10.7 | 10.3 | 12.2 | |||
Total capital ratio (%) | 13.6 | 13.5 | 14.0 | |||
Tangible common equity to risk-weighted assets(1) (%) | 10.4 | 10.1 | 9.4 | |||
Assets-to-capital multiple | 17.5 | 17.3 | 17.5 | |||
Risk-weighted assets ($ millions) | 280,747 | 280,061 | 252,862 | |||
Credit quality | ||||||
Net impaired loans ($ millions)(5) | 1,788 | 1,902 | 2,021 | |||
Allowance for credit losses ($ millions) | 3,212 | 3,097 | 2,713 | |||
Net impaired loans as a % of loans and acceptances(5) | 0.44 | 0.48 | 0.57 | |||
Provisions for credit losses as a % of average loans and acceptances (annualized)(3) | 0.35 | 0.32 | 0.31 | 0.33 | 0.32 | |
Common share information | ||||||
Share price ($) (TSX) | ||||||
High | 61.84 | 59.20 | 57.18 | 61.84 | 57.18 | |
Low | 56.33 | 52.30 | 50.22 | 52.30 | 47.54 | |
Close | 58.09 | 58.65 | 54.80 | |||
Shares outstanding (millions) | ||||||
Average - Basic | 1,193 | 1,186 | 1,134 | 1,189 | 1,112 | |
Average - Diluted | 1,213 | 1,204 | 1,168 | 1,208 | 1,147 | |
End of period | 1,198 | 1,192 | 1,141 | |||
Dividends per share ($) | 0.60 | 0.57 | 0.55 | 1.17 | 1.07 | |
Dividend yield(6) (%) | 4.1 | 4.1 | 4.1 | 4.1 | 4.1 | |
Market capitalization ($ millions) (TSX) | 69,602 | 69,896 | 62,545 | |||
Book value per common share ($) | 31.73 | 30.85 | 26.78 | |||
Market value to book value multiple | 1.8 | 1.9 | 2.0 | |||
Price to earnings multiple (trailing 4 quarters) | 10.7 | 11.0 | 12.1 | |||
Other information | ||||||
Employees | 83,894 | 82,618 | 80,932 | |||
Branches and offices | 3,408 | 3,392 | 3,115 |
(1) | Refer below for a discussion of non-GAAP measures. |
(2) | Prior period amounts have been restated to reflect the current period definition. Refer below for the definition. |
(3) | Prior period amounts and related ratios have been restated to reflect the current period presentation of deposits with financial institutions and cash collateral on securities borrowed and derivative transactions (Refer to Note 3 in the condensed interim consolidated financial statements). |
(4) | Effective November 1, 2012, regulatory capital ratios are determined in accordance with Basel III rules on an all-in basis (Refer to page 19 in the MD&A). Comparative amounts for prior periods were determined in accordance with Basel II rules and have not been restated. |
(5) | Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans related to the acquisition of R-G Premier Bank of Puerto Rico. |
(6) | Based on the average of the high and low common share price for the period. |
Forward-looking statements
Our public communications often include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the United States Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include comments with respect to the Bank's objectives, strategies to achieve those objectives, expected financial results (including those in the area of risk management), and the outlook for the Bank's businesses and for the Canadian, United States and global economies. Such statements are typically identified by words or phrases such as "believe", "expect", "anticipate", "intent", "estimate", "plan", "may increase", "may fluctuate", and similar expressions of future or conditional verbs, such as "will", "should", "would" and "could".
By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not prove to be accurate. Do not unduly rely on forward-looking statements, as a number of important factors, many of which are beyond our control, could cause actual results to differ materially from the estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: the economic and financial conditions in Canada and globally; fluctuations in interest rates and currency values; liquidity; significant market volatility and interruptions; the failure of third parties to comply with their obligations to us and our affiliates; the effect of changes in monetary policy; legislative and regulatory developments in Canada and elsewhere, including changes in tax laws; the effect of changes to our credit ratings; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions and liquidity regulatory guidance; operational and reputational risks; the risk that the Bank's risk management models may not take into account all relevant factors; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services in receptive markets; the Bank's ability to expand existing distribution channels and to develop and realize revenues from new distribution channels; the Bank's ability to complete and integrate acquisitions and its other growth strategies; changes in accounting policies and methods the Bank uses to report its financial condition and financial performance, including uncertainties associated with critical accounting assumptions and estimates; the effect of applying future accounting changes; global capital markets activity; the Bank's ability to attract and retain key executives; reliance on third parties to provide components of the Bank's business infrastructure; unexpected changes in consumer spending and saving habits; technological developments; fraud by internal or external parties, including the use of new technologies in unprecedented ways to defraud the Bank or its customers; consolidation in the Canadian financial services sector; competition, both from new entrants and established competitors; judicial and regulatory proceedings; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including terrorist acts and war on terrorism; the effects of disease or illness on local, national or international economies; disruptions to public infrastructure, including transportation, communication, power and water; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. For more information, see the discussion starting on page 55 of the Bank's 2012 Annual Report.
The preceding list of important factors is not exhaustive. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.
The "Outlook" sections in this document are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections.
Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov.
Notable Business Highlights
Recent initiatives
Recognized for success
Serving our customers
Scotiabank's Bright Future program in action
Non-GAAP Measures
The Bank uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with International Financial Reporting Standards (IFRS), are not defined by IFRS and do not have standardized meanings that would ensure consistency and comparability between companies using these measures. These non-GAAP measures are used throughout this report and defined below.
Assets under administration (AUA)
AUA are assets administered by the Bank which are beneficially owned by
clients and therefore not reported on the Bank's statement of financial
position. Services provided for AUA are of an administrative nature,
such as trusteeship, custodial, safekeeping, income collection and
distribution; securities trade settlements, customer reporting, and
other similar services.
Assets under management (AUM)
AUM are assets managed by the Bank on a discretionary basis and in
respect of which the Bank earns investment management fees. AUM are
beneficially owned by clients and are therefore not reported on the
Bank's consolidated statement of financial position. Some AUM are also
administered assets and are therefore included in assets under
administration, under these circumstances.
Adjusted diluted earnings per share
The adjusted diluted earnings per share is calculated by adjusting the
diluted earnings per share to add back the non-cash, after-tax
amortization of intangible assets related to acquisitions (excluding
software).
Economic equity and return on economic equity
For internal reporting purposes, the Bank attributes capital to its
business segments based on their risk profile and uses a methodology
that considers credit, market, operational and other risks inherent in
each business segment. The amount of risk capital attributed is
commonly referred to as economic equity. In the first quarter of 2013
the economic equity methodology was updated to include new models and
assumptions. The changes have been applied prospectively. Return on
economic equity for the business segments is calculated as a ratio of
net income attributable to common shareholders of the business segment
and the economic equity attributed.
Core banking margin (TEB)
This ratio represents net interest income (on a taxable equivalent
basis) on average earning assets excluding bankers acceptances and
total average assets relating to the Global Capital markets business
within Global Banking and Markets. This is consistent with the
classification of net interest from trading operations in revenues from
trading operations recorded in other operating income.
Operating leverage (TEB)
The Bank defines operating leverage as the rate of growth in total
revenue (on a taxable equivalent basis), less the rate of growth in
operating expenses.
Productivity ratio (TEB)
Management uses the productivity ratio as a measure of the Bank's
efficiency. This ratio represents operating expenses as a percentage of
total revenue (TEB).
Return on equity
Return on equity is a profitability measure that presents the net income
attributable to common shareholders as a percentage of common
shareholders' equity. The Bank calculates its return on equity using
average common shareholders' equity.
Tangible common equity to risk-weighted assets
Tangible common equity to risk-weighted assets is an alternative
financial measure for assessing the quality of capital. Tangible common
equity is total common equity plus non-controlling interests in
subsidiaries, less goodwill and unamortized intangible assets (net of
taxes). Tangible common equity is presented as a percentage of
risk-weighted assets. In prior years, risk-weighted assets were
comprised of Basel II risk-weighted assets adjusted for intangible
assets deducted from tangible common equity. For 2013, the tangible
common equity ratio includes Basel III risk-weighted assets, adjusted
to include amounts recognized as regulatory deductions at 100% risk
weight.
Regulatory capital ratios, such as Common Equity Tier 1, Tier 1 and Total Capital ratios, have standardized meanings as defined by the Office of the Superintendent of Financial Institutions Canada.
Taxable equivalent basis
The Bank analyzes net interest income, other operating income, and total
revenue on a taxable equivalent basis (TEB). This methodology grosses
up tax-exempt income earned on certain securities reported in either
net interest income or other operating income to an equivalent before
tax basis. A corresponding increase is made to the provision for income
taxes; hence, there is no impact on net income. Management believes
that this basis for measurement provides a uniform comparability of net
interest income and other operating revenue arising from both taxable
and non-taxable sources and facilitates a consistent basis of
measurement. While other banks also use TEB, their methodology may not
be comparable to the Bank's methodology. For purposes of segmented
reporting, a segment's revenue and provision for income taxes are
grossed up by the taxable equivalent amount. The elimination of the TEB
gross up is recorded in the Other segment. The TEB gross up to net
interest income, other operating income, total revenue, and provision
for income taxes are presented below:
For the three months ended | For the six months ended | |||||||||
TEB Gross up ($ millions) |
April 30 2013 |
January 31 2013 |
April 30 2012 |
April 30 2013 |
April 30 2012 |
|||||
Net interest income | $ | 3 | $ | 4 | $ | 3 | $ | 7 | $ | 8 |
Other operating income | 79 | 70 | 66 | 149 | 129 | |||||
Total revenue and provision for taxes | $ | 82 | $ | 74 | $ | 69 | $ | 156 | $ | 137 |
Group Financial Performance
Financial results
Scotiabank's net income for the second quarter was $1,601 million, compared with $1,460 million for the same period last year and $1,625 million last quarter.
Diluted earnings per share were $1.23 up 7% from $1.15 in the same period a year ago but down 2 cents per share from $1.25 in the first quarter.
Return on equity remained strong at 16.2%, compared to 18.6% last year and 16.6% last quarter.
Impact of foreign currency translation
The table below reflects the impact of foreign currency translation on
the year-over-year, quarter-over-quarter and year-to-date over
year-to-date change in key income statement items. The impact of
foreign currency translation was not significant when comparing the
year-over-year impact for both quarterly and year-to-date results.
($ millions) |
For the three months ended |
For the six months ended |
||||||||
Apr. 30, 2013 vs. Apr. 30, 2012 |
Apr. 30, 2013 vs. Jan. 31, 2013 |
Apr. 30, 2013 vs. Apr. 30, 2012 |
||||||||
U.S./Canadian dollar exchange rate (average) | ||||||||||
April 30, 2013 | $ | 0.983 | $ | 0.983 | $ | 0.995 | ||||
January 31, 2013 | $ | 1.007 | ||||||||
April 30, 2012 | $ | 1.006 | $ | $ | 0.992 | |||||
% change | -2.3% | -2.4% | 0.3% | |||||||
Impact on income: | ||||||||||
Net interest income | $ | 33 | $ | 36 | $ | 17 | ||||
Net fee and commission revenues | 15 | 17 | 8 | |||||||
Other operating income(1) | (17) | (9) | (27) | |||||||
Operating expenses | (27) | (29) | (19) | |||||||
Other items (net of tax) | (4) | (7) | - | |||||||
Net income | $ | - | $ | 8 | $ | (21) | ||||
Impact by business line: | ||||||||||
Canadian Banking | $ | 1 | $ | 2 | $ | - | ||||
International Banking(1) | (1) | 9 | (8) | |||||||
Global Wealth Management | 2 | 3 | (1) | |||||||
Global Banking and Markets | 10 | 7 | 1 | |||||||
Other(1) | $ | (12) | $ | (13) | $ | (13) |
(1) | Includes the impact of foreign currency hedges. |
Q2 2013 vs Q2 2012
Net income
Scotiabank's net income was $1,601 million in the second quarter, an
increase of $141 million or 10% from the same period a year ago. Recent
acquisitions contributed $61 million to the year-over-year growth. The
remaining increase was from higher net interest income, growth in
transaction-based fees and wealth management revenues and increased net
gains on investment securities. The growth was partly offset by lower
trading revenues, increased operating expenses and higher provisions
for credit losses.
Total revenue
Total revenue (on a taxable equivalent basis) of $5,304 million was up
$531 million or 11% from the same quarter last year. Acquisitions
accounted for $202 million. The remaining increase was attributable to
higher net interest income from asset growth, increased banking fees,
stronger wealth management and insurance revenues and higher net gains
on investment securities. Partly offsetting the increases were lower
trading revenues.
Net interest income
Net interest income (on a taxable equivalent basis) was $2,787 million,
$303 million or 12% higher than the same quarter last year. This was
attributable to the acquisition of ING Bank of Canada (ING DIRECT) and
growth in assets, primarily Canadian residential mortgages, retail and
commercial loans in International Banking and corporate loans. These
increases were partly offset by a lower margin.
The core banking margin was 2.31%, down from 2.37% last year. The decrease in the margin was due mainly to lower spreads from the acquisition of ING DIRECT.
Net fee and commission revenues
Net fee and commission revenues of $1,736 million were up $159 million
or 10% from the same period last year. The growth was partly
attributable to recent acquisitions, as well as increases in credit and
commercial banking fees, non-trading foreign exchange revenues and
underwriting fees. There were also stronger wealth management revenues
in brokerage fees and mutual funds, from growth in assets under
management and assets under administration.
Other operating income
Other operating income (on a taxable equivalent basis) was $781 million,
up $69 million or 10% from last year's $712 million. This increase
reflected higher net gains on investment securities, stronger insurance
income and growth in revenues from associated corporations. Trading
revenues were down slightly year over year as higher revenues in the
fixed income business were more than offset by weaker results in the
precious metals and commodities businesses.
Provision for credit losses
The provision for credit losses was $343 million this quarter, up $79
million from the same period last year. The year-over-year increase was
due to higher provisions across all business lines, with the largest
increases in International retail banking and Canadian commercial
banking, where the Bank provided for one large account.
Operating expenses and productivity
Operating expenses were $2,841 million, up $276 million or 11% from the
same quarter last year, $114 million of which arose from acquisitions.
The remaining growth was across most operating expense categories to
support planned revenue initiatives and increasing regulatory costs.
The largest increases were in compensation-related expenses, which rose
due to annual merit increases, higher staffing levels, and increased
stock-based and performance-based compensation. Premises costs were
also up due mainly to the sale of Scotia Plaza last year. As well there
were higher technology and marketing costs to support business growth
and regulatory requirements, partly offset by business-related tax
recoveries related to prior years.
The productivity ratio was 53.6%, in line with 53.7% in the same quarter last year.
Taxes
The effective tax rate of 21.5% was down from 22.2% in the same quarter
last year, due mainly to higher income in lower tax jurisdictions and
higher tax-exempt dividend income in the current quarter.
Q2 2013 vs Q1 2013
Net income
Net income was $1,601 million, down $24 million, or 1% compared to the
first quarter. Growth in fee and commission revenues and higher net
gains on investment securities were more than offset by lower trading
revenues, increases in provisions for credit losses, and the impact of
a shorter quarter.
Total revenue
Total revenue (on a taxable equivalent basis) was $5,304 million, up $48
million or 1% quarter over quarter. This increase was due mainly to
growth in wealth management revenues, increased underwriting and
foreign exchange fees and higher net gains on investment securities.
The full quarter impact of the acquisition of ING DIRECT and the
positive impact of foreign currency translation also contributed to the
higher total revenue. These increases were mostly offset by lower
trading revenues and a reduced contribution from associated
corporations.
Net interest income
Net interest income (on a taxable equivalent basis) of $2,787 million,
was up marginally from $2,775 million in the previous quarter. This
increase was attributable to the impact of recent acquisitions and
asset growth, primarily in residential mortgages. These increases were
partly offset by the impact of three fewer days in the quarter.
The core banking margin was relatively unchanged at 2.31%.
Net fee and commission revenues
Net fee and commission revenues of $1,736 million rose $75 million or 5%
quarter over quarter, of which $23 million related to acquisitions. The
remaining growth was due primarily to higher wealth management revenues
from growth in assets under management, assets under administration and
improved market conditions. Underwriting and foreign exchange fees were
also higher quarter-over-quarter.
Other operating income
Other operating income (on a taxable equivalent basis) fell by
$39 million or 5% to $781 million. The decline was due primarily to
lower trading results in the fixed income, precious metals and
commodities businesses due to challenging market conditions. Net income
from associated corporations was also down due primarily to a lower
contribution from an associated corporation in Venezuela as a result of
lower earnings and the impact of currency devaluation. These decreases
were partially offset by higher net gains on investment securities.
Provision for credit losses
The provision for credit losses was $343 million this quarter, up $33
million from the prior quarter. The quarter-over-quarter increase was
due primarily to higher provisions in Canadian commercial banking and
International retail banking.
Operating expenses and productivity
Operating expenses of $2,841 million were $28 million or 1% higher
quarter-over-quarter, but were flat excluding the negative impact of
foreign currency translation. Recent acquisitions contributed
$47 million to the growth. Excluding acquisitions, operating expenses
were marginally lower compared to last quarter, due mainly to lower
stock-based compensation as a result of the seasonally higher amounts
in the prior quarter. This quarter, the Bank also benefitted from
business-related tax recoveries related to prior years. Partially
offsetting these reductions were higher premises, advertising and
professional expenses.
The productivity ratio was 53.6%, compared to 53.5% in the previous quarter.
Taxes
The effective tax rate this quarter increased to 21.5% from 21.1% in the
prior quarter due primarily to lower foreign tax recoveries, partially
offset by higher tax-exempt dividend income in the current quarter.
Year-to-date Q2 2013 vs Year-to-date Q2 2012
Net income
Net income was $3,226 million, an increase of $330 million or 11%
compared to the same period last year, which included an after-tax real
estate gain of $94 million. Excluding this gain, net income was up
$424 million or 15%. Recent acquisitions contributed approximately 43%
of this growth. The remaining increase was attributable to higher net
interest income, growth in wealth management and transaction-based
banking revenues, stronger contributions from associated corporations
and higher net gains on investment securities. These items were partly
offset by an increase in operating expenses and provisions for credit
losses.
Total revenue
For the six month period, total revenue (on a taxable equivalent basis)
of $10,560 million was $1,098 million or 11% higher than the same
period last year. Last year's results included a real estate gain of
$111 million. Acquisitions accounted for $605 million of the
year-over-year growth. The remaining increase was due mainly to strong
net interest income from asset growth, higher banking and wealth
management revenues, and increased contributions from associated
corporations. There were also higher net gains on investment securities
and stronger insurance income.
Net interest income
Net interest income (on a taxable equivalent basis) was $5,562 million
for the six month period, up $698 million or 14% from the previous
period. This was attributable to diversified loan growth in
International Banking, higher residential mortgages and consumer auto
loans in Canadian Banking and increases in corporate loans.
The year-to-date core banking margin was 2.30%, down slightly from 2.31% for the same period last year.
Net fee and commission revenues
Compared to the same period last year, net fee and commission revenues
of $3,397 million were up $320 million or 10%. The growth was
attributable primarily to higher transaction-based banking fees from
both acquisitions and existing businesses. In addition, there was
strong growth in wealth management revenues from increases in assets
under management and assets under administration, improved market
conditions and recent acquisitions.
Other operating income
Other operating income (on a taxable equivalent basis) increased by $80
million or 5% to $1,601 million. Last year included a real estate gain
of $111 million. Excluding this gain, other operating income was up
$191 million or 14%. This year-over-year increase was due mainly to
increased income from associated corporations, higher gains on
investment securities and growth in insurance underwriting revenues due
to growth in premium income.
Provision for credit losses
For the six month period, total provisions for credit losses were $653
million, up $124 million from $529 million during the same period last
year. Higher provisions in International Banking accounted for the
majority of the increase with a portion due to new acquisitions.
Operating expenses and productivity
Operating expenses were $5,654 million, $582 million or 11% higher than
last year. Recent acquisitions accounted for $298 million of the
growth. The remaining increase of $284 million or 5% was due mainly to
a rise in compensation-related expenses from increased staffing levels,
annual merit increases and higher performance-based compensation.
Pension and benefits expenses were also up, mostly reflecting the
impact of the continued low interest rate environment. There were also
higher premises costs due mainly to the sale of Scotia Plaza last year.
The remaining growth across the other operating expense categories was
primarily to support ongoing revenue and regulatory initiatives.
The productivity ratio was 53.5%, in line with 53.6% for the same period last year. Operating leverage year over year was positive 0.1%. However, adjusting for the real estate gain in the first quarter of last year, the operating leverage was positive 1.5%.
Taxes
The effective tax rate for the first six months was 21.3%, down from
22.2% in the same period last year. The decrease in the effective tax
rate was due primarily to higher foreign tax recoveries, lower deferred
tax adjustments and increased tax-exempt dividend income in the current
year.
Financial position
The Bank's total assets at April 30, 2013 were $754 billion, up $86 billion or 13% from October 31, 2012, including approximately $41 billion related to the acquisition of ING DIRECT. The impact of foreign currency translation was not significant.
Cash and deposits with financial institutions grew by $8 billion, due mainly to increases in interest bearing deposits with central banks. Precious metals decreased $4 billion due to lower prices and inventory. Securities purchased under resale agreements and securities borrowed increased by $19 billion.
Trading assets increased $17 billion from October 31, 2012. Trading securities rose $19 billion from higher holdings of Canadian and U.S. government debt and common equities. Trading loans decreased $2 billion due mainly to a reduction in precious metals trading and lending activities.
Investment securities grew by $2 billion due mainly to increased holdings of Canadian government debt from the acquisition of ING DIRECT. As at April 30, 2013, the unrealized gain on available-for-sale securities, after the impact of qualifying hedges is taken into account, was $1,074 million, an increase of $183 million from October 31, 2012. The change was due mainly to increases in the values of common equities.
Loans increased $42 billion or 12% from October 31, 2012. Residential mortgages increased $32 billion mainly from the acquisition of ING DIRECT. Personal and credit card loans rose $3 billion due mainly to growth in Canada and Mexico. Business and government loans were up $7 billion due primarily to growth in Latin America and Asia, as well as in Canada due mainly to the acquisition of ING DIRECT.
Total liabilities were $710 billion as at April 30, 2013, up $83 billion or 13% from October 31, 2012, including $38 billion from ING DIRECT.
Total deposits increased by $54 billion. Personal deposits grew by $31 billion primarily from the acquisition of ING DIRECT. Business and government deposits increased $22 billion from both the ING DIRECT acquisition as well as growth in the U.S. Deposits by financial institutions increased $1 billion in Asia.
Obligations related to securities sold under repurchase agreements and securities lent as well as obligations related to securities sold short grew by $24 billion and $6 billion, respectively. Derivative instrument liabilities decreased $2 billion.
Total equity increased $2,828 million from October 31, 2012. This increase was driven by internal capital generation of $1,588 million and the issuance of common shares of $765 million, comprised of $99 million for the purchase of Colfondos in Colombia and $666 million through the Dividend Reinvestment Plan and the exercise of options.
Accumulated other comprehensive income increased $382 million due mainly to higher unrealized gains on available-for-sale securities and reduced unrealized foreign exchange losses on the Bank's investments in its foreign operations.
Non-controlling interests in subsidiaries increased $100 million due mainly to current period net income attributable to non-controlling interests, net of dividends paid, and the acquisition of Colfondos. Non-controlling interests for capital instrument equity holders decreased $32 million due mainly to distributions to noteholders.
Capital ratios
The Bank's various regulatory capital amounts consist of the following:
As at | ||||||
April 30 2013 |
January 31 2013 |
October 31 2012 |
||||
($ millions) |
Basel III All-in |
Basel III All-in |
Basel II | |||
Common Equity Tier 1 capital | $ | 24,013 | $ | 23,014 | $ | n/a |
Tier 1 capital | 29,961 | 28,960 | 34,436 | |||
Total regulatory capital | 38,204 | 37,818 | 42,193 | |||
Total risk-weighted assets | 280,747 | 280,061 | 253,309 | |||
Capital ratios: | ||||||
Common Equity Tier 1 capital | 8.6% | 8.2% | n/a | |||
Tier 1 capital ratio | 10.7% | 10.3% | 13.6% | |||
Total capital ratio | 13.6% | 13.5% | 16.7% | |||
Assets-to-capital multiple | 17.5x | 17.3x | 15.0x | |||
The Bank continues to maintain a strong capital position. As at April 30, 2013 the CET1, Tier 1 and Total Capital ratios under Basel III all-in were 8.6%, 10.7% and 13.6% (January 31, 2013 - 8.2%, 10.3% and 13.5%), respectively, well above minimum requirements. As at October 31, 2012, the Basel II Tier 1 and Total Capital ratios were 13.6% and 16.7%, respectively.
Business Segment Review
Scotiabank's results, average assets, allocated by these operating
segments are as follows:
For the three months ended April 30, 2013 | |||||||||||||
Taxable equivalent basis(1) ($ millions) |
Canadian Banking |
International Banking |
Global Wealth Management |
Global Banking and Markets |
Other(2) | Total | |||||||
Net interest income | $ | 1,352 | $ | 1,248 | $ | 123 | $ | 212 | $ | (151) | $ | 2,784 | |
Net fee and commission revenues | 369 | 342 | 738 | 337 | (50) | 1,736 | |||||||
Net income from investments in associated corporations | - | 127 | 54 | - | (45) | 136 | |||||||
Other operating income | 25 | 131 | 99 | 352 | (41) | 566 | |||||||
Provision for credit losses | 136 | 194 | 1 | 12 | - | 343 | |||||||
Operating expenses | 869 | 1,029 | 591 | 396 | (44) | 2,841 | |||||||
Provision for income taxes | 194 | 154 | 87 | 132 | (130) | 437 | |||||||
Net income | $ | 547 | $ | 471 | $ | 335 | $ | 361 | $ | (113) | $ | 1,601 | |
Net income attributable to non-controlling interests | |||||||||||||
Non-controlling interests in subsidiaries | - | 52 | 9 | - | - | 61 | |||||||
Capital instrument equity holders | - | - | - | - | 6 | 6 | |||||||
Net income attributable to equity holders of the Bank | $ | 547 | $ | 419 | $ | 326 | $ | 361 | $ | (119) | $ | 1,534 | |
Average assets ($ billions) | $ | 273 | $ | 122 | $ | 14 | $ | 254 | $ | 92 | $ | 755 | |
Average liabilities ($ billions) | $ | 191 | $ | 79 | $ | 18 | $ | 193 | $ | 230 | $ | 711 |
(1) | Refer above for a discussion of non-GAAP measures. |
(2) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and other operating income and provision for income taxes of ($82) to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments. |
For the three months ended January 31, 2013 | |||||||||||||
Taxable equivalent basis(1) ($ millions) |
Canadian Banking |
International Banking |
Global Wealth Management |
Global Banking and Markets |
Other(2) | Total | |||||||
Net interest income | $ | 1,361 | $ | 1,200 | $ | 122 | $ | 217 | $ | (129) | $ | 2,771 | |
Net fee and commission revenues | 384 | 334 | 683 | 305 | (45) | 1,661 | |||||||
Net income from investments in associated corporations | 9 | 132 | 56 | - | (47) | 150 | |||||||
Other operating income | 1 | 90 | 104 | 427 | (22) | 600 | |||||||
Provision for credit losses | 118 | 186 | 1 | 5 | - | 310 | |||||||
Operating expenses | 861 | 976 | 570 | 406 | - | 2,813 | |||||||
Provision for income taxes | 202 | 128 | 84 | 139 | (119) | 434 | |||||||
Net income | $ | 574 | $ | 466 | $ | 310 | $ | 399 | $ | (124) | $ | 1,625 | |
Net income attributable to non-controlling interests | |||||||||||||
Non-controlling interests in subsidiaries | - | 50 | 9 | - | - | 59 | |||||||
Capital instrument equity holders | - | - | - | - | 7 | 7 | |||||||
Net income attributable to equity holders of the Bank | $ | 574 | $ | 416 | $ | 301 | $ | 399 | $ | (131) | $ | 1,559 | |
Average assets ($ billions) | $ | 267 | $ | 115 | $ | 14 | $ | 240 | $ | 93 | $ | 729 | |
Average liabilities ($ billions) | $ | 185 | $ | 76 | $ | 17 | $ | 175 | $ | 234 | $ | 687 |
(1) | Refer above for a discussion of non-GAAP measures. |
(2) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and other operating income and provision for income taxes of ($74) to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments. |
For the three months ended April 30, 2012 | |||||||||||||
Taxable equivalent basis(1) ($ millions) |
Canadian Banking |
International Banking |
Global Wealth Management |
Global Banking and Markets |
Other(2) | Total | |||||||
Net interest income | $ | 1,156 | $ | 1,137 | $ | 126 | $ | 203 | $ | (141) | $ | 2,481 | |
Net fee and commission revenues | 361 | 336 | 627 | 330 | (77) | 1,577 | |||||||
Net income from investments in associated corporations | - | 109 | 54 | - | (43) | 120 | |||||||
Other operating income | - | 81 | 98 | 377 | (30) | 526 | |||||||
Provision for credit losses | 120 | 145 | - | (1) | - | 264 | |||||||
Operating expenses | 771 | 926 | 525 | 365 | (22) | 2,565 | |||||||
Provision for income taxes | 165 | 144 | 82 | 159 | (135) | 415 | |||||||
Net income | $ | 461 | $ | 448 | $ | 298 | $ | 387 | $ | (134) | $ | 1,460 | |
Net income attributable to non-controlling interests | |||||||||||||
Non-controlling interests in subsidiaries | - | 49 | 7 | - | - | 56 | |||||||
Capital instrument holders | - | - | - | - | 13 | 13 | |||||||
Net income attributable to equity holders of the Bank | $ | 461 | $ | 399 | $ | 291 | $ | 387 | $ | (147) | $ | 1,391 | |
Average assets ($ billions) | $ | 222 | $ | 112 | $ | 13 | $ | 211 | $ | 89 | $ | 647 | |
Average liabilities ($ billions) | $ | 148 | $ | 71 | $ | 16 | $ | 153 | $ | 224 | $ | 612 |
(1) | Refer above for a discussion of non-GAAP measures. |
(2) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and other operating income and provision for income taxes of ($69) to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments. |
For the six months ended April 30, 2013 | |||||||||||||
Taxable equivalent basis(1) ($ millions) |
Canadian Banking |
International Banking |
Global Wealth Management |
Global Banking and Markets |
Other(2) | Total | |||||||
Net interest income | $ | 2,713 | $ | 2,448 | $ | 245 | $ | 429 | $ | (280) | $ | 5,555 | |
Net fee and commission revenues | 753 | 676 | 1,421 | 642 | (95) | 3,397 | |||||||
Net income from investments in associated corporations | 9 | 259 | 110 | - | (92) | 286 | |||||||
Other operating income | 26 | 221 | 203 | 779 | (63) | 1,166 | |||||||
Provision for credit losses | 254 | 380 | 2 | 17 | - | 653 | |||||||
Operating expenses | 1,730 | 2,005 | 1,161 | 802 | (44) | 5,654 | |||||||
Provision for income taxes | 396 | 282 | 171 | 271 | (249) | 871 | |||||||
Net income | $ | 1,121 | $ | 937 | $ | 645 | $ | 760 | $ | (237) | $ | 3,226 | |
Net income attributable to non-controlling interests | |||||||||||||
Non-controlling interests in subsidiaries | - | 102 | 18 | - | - | 120 | |||||||
Capital instrument holders | - | - | - | - | 13 | 13 | |||||||
Net income attributable to equity holders of the Bank | $ | 1,121 | $ | 835 | $ | 627 | $ | 760 | $ | (250) | $ | 3,093 | |
Average assets ($ billions) | $ | 270 | $ | 118 | $ | 14 | $ | 247 | $ | 93 | $ | 742 | |
Average liabilities ($ billions) | $ | 188 | $ | 78 | $ | 17 | $ | 184 | $ | 232 | $ | 699 |
(1) | Refer above for a discussion of non-GAAP measures. |
(2) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and other operating income and provision for income taxes of ($156) to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments. |
For the six months ended April 30, 2012 | |||||||||||||
Taxable equivalent basis(1) ($ millions) |
Canadian Banking |
International Banking |
Global Wealth Management |
Global Banking and Markets |
Other(2) | Total | |||||||
Net interest income | $ | 2,330 | $ | 2,140 | $ | 249 | $ | 373 | $ | (236) | $ | 4,856 | |
Net fee and commission revenues | 726 | 627 | 1,213 | 619 | (108) | 3,077 | |||||||
Net income from investments in associated corporations | 1 | 177 | 107 | - | (72) | 213 | |||||||
Other operating income | 9 | 170 | 195 | 763 | 42 | 1,179 | |||||||
Provision for credit losses | 256 | 269 | - | 4 | - | 529 | |||||||
Operating expenses | 1,539 | 1,771 | 1,020 | 755 | (13) | 5,072 | |||||||
Provision for income taxes | 335 | 235 | 158 | 298 | (198) | 828 | |||||||
Net income | $ | 936 | $ | 839 | $ | 586 | $ | 698 | $ | (163) | $ | 2,896 | |
Net income attributable to non-controlling interests | |||||||||||||
Non-controlling interests in subsidiaries | 1 | 67 | 13 | - | - | 81 | |||||||
Capital instrument holders | - | - | - | - | 26 | 26 | |||||||
Net income attributable to equity holders of the Bank | $ | 935 | $ | 772 | $ | 573 | $ | 698 | $ | (189) | $ | 2,789 | |
Average assets ($ billions) | $ | 220 | $ | 107 | $ | 13 | $ | 209 | $ | 92 | $ | 641 | |
Average liabilities ($ billions) | $ | 148 | $ | 67 | $ | 15 | $ | 156 | $ | 221 | $ | 607 |
(1) | Refer above for a discussion of non-GAAP measures. |
(2) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and other operating income and provision for income taxes of ($137), to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments. |
Canadian Banking
Q2 2013 vs Q2 2012
Canadian Banking reported net income attributable to equity holders of
$547 million, an increase of $86 million or 19% from the same period
last year, driven by the acquisition of ING Bank of Canada (ING
DIRECT), strong organic asset growth and gains on investment
securities. Return on economic equity decreased to 34.6% from 38.3%
last year, mainly reflecting an increase in economic equity related to
ING DIRECT.
Q2 2013 vs Q1 2013
Quarter over quarter, net income attributable to equity holders
decreased $27 million or 5% primarily due to the impact of a shorter
quarter and a higher provision for credit losses. Return on equity
decreased to 34.6% from 36.3% last quarter.
Year-to-date Q2 2013 vs Year-to-date Q2 2012
Canadian Banking reported net income attributable to equity holders of
$1,121 million, an increase of $186 million or 20% from the same period
last year, driven by the acquisition of ING DIRECT, strong organic
asset growth and gains on investment securities. Return on economic
equity decreased to 35.5% from 38.6% last year, mainly reflecting an
increase in economic equity related to ING DIRECT.
International Banking
Q2 2013 vs. Q2 2012
International Banking reported a solid quarter with net income
attributable to equity holders of $419 million, an increase of $20
million or 5% from the same quarter last year. It was driven by strong
loan growth in Latin America, higher gains on investment securities and
a stronger contribution from associated corporations, partly offset by
increased provisions for credit losses. Return on economic equity was
13.8% versus 12.4% in the same quarter last year.
Q2 2013 vs. Q1 2013
Net income attributable to equity holders increased $3 million or 1%
over last quarter. Higher gains on investment securities were mainly
offset by the impact of a tax benefit in Puerto Rico last quarter.
Return on economic equity was 13.8%, in line with 13.9% last quarter.
Year-to-date Q2 2013 vs Year-to-date Q2 2012
Net income attributable to equity holders increased by $63 million or 8%
to $835 million. This was driven by strong asset growth particularly in
Latin America, acquisitions of Banco Colpatria in Colombia and Credito
Familiar in Mexico, higher contributions from associated companies and
gains on investment securities, partly offset by higher provisions for
credit losses. Return on economic equity was 13.9% versus 12.5% last
year.
Global Wealth Management
Q2 2013 vs Q2 2012
Global Wealth Management reported net income attributable to equity
holders of $326 million this quarter, an increase of $35 million or 12%
from the same quarter last year. Net income increased due to strong
results from the wealth management and insurance businesses. Growth in
wealth management was driven by higher assets under management (AUM)
and assets under administration (AUA) from net sales and improved
financial market conditions. There were also stronger results from
global insurance. Return on equity was 18.5% compared to 15.0% last
year.
Q2 2013 vs Q1 2013
Quarter over quarter, net income attributable to equity holders was up
$25 million or 8% due mostly to higher brokerage revenues, increased
mutual fund fees, and stronger international wealth and insurance
revenues, partially offset by higher operating expenses.
Year-to-date Q2 2013 vs Year-to-date Q2 2012
On a year-to-date basis, net income attributable to equity holders
increased by $54 million or 9% due to stronger results from both the
wealth management and insurance businesses. Growth in wealth management
was driven by higher AUM and AUA from net sales, and improved financial
markets. Growth in insurance earnings was also strong. Return on
economic equity was 17.8% compared to 14.5% for the same period last
year.
Global Banking and Markets
Q2 2013 vs Q2 2012
Global Banking and Markets contributed solid results this quarter,
reporting net income attributable to equity holders of $361 million.
The year-over-year decrease of $26 million or 7%, was due to
market-driven challenges in the commodities and precious metals
businesses, along with lower underwriting and advisory fees. These were
only partly offset by stronger results in the lending and fixed income
businesses. Return on economic equity was 27.1% this quarter compared
to 29.1% in the same period last year.
Q2 2013 vs Q1 2013
Net income attributable to equity holders decreased $38 million or 10%
compared to the prior quarter, as capital markets activity moderated
from the strong trend of the last few quarters. Challenging market
conditions saw declines in the fixed income, commodities and precious
metals businesses, partly offset by a stronger performance in the
equities business. Provisions for credit losses were also somewhat
higher. Return on economic equity decreased to 27.1% from 30.8%.
Year-to-date Q2 2013 vs Year-to-date Q2 2012
Global Banking and Markets reported strong net income attributable to
equity holders of $760 million in the first half of the year. The
increase of $62 million or 9% compared to the prior year was driven by
stronger revenues in all of the lending businesses, as well as the
fixed income and equities businesses, and lower taxes. Return on
economic equity was 28.9% compared to 26.2% in the same period last
year.
Other
The Other segment includes Group Treasury, smaller operating segments and other corporate items which are not allocated to a business line.
Net interest income, other operating income, and the provision for income taxes in each period include the elimination of tax-exempt income gross-up. This amount is included in the operating segments, which are reported on a taxable equivalent basis. The elimination was $82 million in the second quarter, compared to $69 million in the same period last year and $74 million last quarter.
Net income from investments in associated corporations and the provision for income taxes in each period include the tax normalization adjustments related to the gross-up of income from associated companies. This adjustment normalizes the effective tax rate in the divisions to better present the contribution of the associated companies to the divisional results.
Q2 2013 vs Q2 2012
The Other segment had a net loss attributable to equity holders of $119
million in the quarter, compared to a net loss of $147 million last
year due partly to lower operating expenses this quarter. In addition,
the prior year included an offset to revenues reported in other
operating segments related to the underwriting of the Bank's common
share issue.
Q2 2013 vs Q1 2013
The Other segment had a net loss attributable to equity holders of $119
million in the second quarter, compared to a net loss of $131 million
in the prior quarter. The improvement was mainly from lower taxes and
lower operating expenses.
Year-to-date Q2 2013 vs Year-to-date Q2 2012
The Other segment had a net loss attributable to equity holders of $250
million in the first half of the year, compared to a net loss of $189
million last year due primarily to the last year's after-tax gain of
$94 million from the sale of a real estate asset, which was partially
offset by lower operating expenses this year.
Shareholder Information
Direct deposit service
Shareholders may have dividends deposited directly into accounts held at
financial institutions which are members of the Canadian Payments
Association. To arrange direct deposit service, please write to the
transfer agent.
Dividend and Share Purchase Plan
Scotiabank's dividend reinvestment and share purchase plan allows common
and preferred shareholders to purchase additional common shares by
reinvesting their cash dividend without incurring brokerage or
administrative fees.
As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. Debenture holders may apply interest on fully registered Bank subordinated debentures to purchase additional common shares. All administrative costs of the plan are paid by the Bank.
For more information on participation in the plan, please contact the transfer agent.
Dividend dates for 2013
Record and payment dates for common and preferred shares, subject to
approval by the Board of Directors.
Record Date | Payment Date | |||
January 2 | January 29 | |||
April 2 | April 26 | |||
July 2 | July 29 | |||
October 1 | October 29 |
Annual Meeting date for fiscal 2013
The Annual Meeting for the fiscal year 2013 is scheduled for April 8,
2014, in Kelowna, British Columbia, Canada.
Duplicated communication
If your shareholdings are registered under more than one name or
address, multiple mailings will result. To eliminate this duplication,
please write to the transfer agent to combine the accounts.
Website
For information relating to Scotiabank and its services, visit us at our
website: www.scotiabank.com.
Conference call and Web broadcast
The quarterly results conference call will take place on May 28, 2013,
at 2:00 pm EDT and is expected to last approximately one hour.
Interested parties are invited to access the call live, in listen-only
mode, by telephone, toll-free, at (416) 644-3414 or 1-800-814-4859
(please call five to 15 minutes in advance). In addition, an audio
webcast, with accompanying slide presentation, may be accessed via the
Investor Relations page of www.scotiabank.com. Following discussion of the results by Scotiabank executives, there
will be a question and answer session.
A telephone replay of the conference call will be available from May 29, 2013, to June 12, 2013, by calling (416) 640-1917 or 1-877-289-8525 and entering the identification code 4584493#. The archived audio webcast will be available on the Bank's website for three months.
Contact information
Investors:
Financial analysts, portfolio managers and other investors requiring
financial information, please contact Investor Relations, Finance
Department:
Scotiabank
Scotia Plaza, 44 King Street West
Toronto, Ontario, Canada M5H 1H1
Telephone: (416) 775-0798
Fax: (416) 866-7867
E-mail: investor.relations@scotiabank.com
Media:
For media enquiries, please contact the Public, Corporate and Government
Affairs Department at the above address.
Telephone: (416) 866-4826
Fax: (416) 866-4988
E-mail: corporate.communications@scotiabank.com
Shareholders:
For enquiries related to changes in share registration or address,
dividend information, lost share certificates, estate transfers, or to
advise of duplicate mailings, please contact the Bank's transfer agent:
Computershare Trust Company of Canada
100 University Avenue, 9th Floor
Toronto, Ontario, Canada M5J 2Y1
Telephone: 1-877-982-8767
Fax: 1-888-453-0330
E-mail: service@computershare.com
Shareholders (continued):
Co-Transfer Agent (U.S.A.)
Computershare Trust Company N.A.
250 Royall Street
Canton, MA 02021 U.S.A.
Telephone: 1-800-962-4284
For other shareholder enquiries, please contact the Finance Department:
Scotiabank
Scotia Plaza, 44 King Street West
Toronto, Ontario, Canada M5H 1H1
Telephone: (416) 866-4790
Fax: (416) 866-4048
E-mail: corporate.secretary@scotiabank.com
Rapport trimestriel disponible en français
Le Rapport annuel et les états financiers de la Banque sont publiés en
français et en anglais et distribués aux actionnaires dans la version
de leur choix. Si vous préférez que la documentation vous concernant
vous soit adressée en français, veuillez en informer Relations
publiques, Affaires de la société et Affaires gouvernementales, La
Banque de Nouvelle-Écosse, Scotia Plaza, 44, rue King Ouest, Toronto
(Ontario), Canada M5H 1H1, en joignant, si possible, l'étiquette
d'adresse, afin que nous puissions prendre note du changement.
The Bank of Nova Scotia is incorporated in Canada with limited liability.
SOURCE: Scotiabank - Financial Releases
Peter Slan, Senior Vice President, Investor Relations, (416) 933-1273; Andrew Chornenky, Media Communications, (416) 866-4826